E.—3

SAN FRANCISCO MAIL SEEVICE. (L'APERS RELATIVE TO.) (Presented to Loth Mouses of the General Assembly by command of His Excellency.) No. 1. Mr. W. 11. Webb to the Hon. J. Voqel. U.S., N.Z., and A.M.S.S. Line, 54, Exchange Place, Sir, — New York, Oth August, 1872. I have the honor to enclose herewith, copies of letters of this date, addressed to J. P. Koxburc;li, Esq., Sydney, and also to request your favourable consideration and approval of the proposition contained therein, which I deem both advisable and necessary under the unexpected and embarrassing circumstances growing out of the course pursued by the Parliament of Victoria. I have, &c., Hon. J. Vogel, Postmaster-General, Wellington. W. H. Webb.

Enclosure 1 in No. 1. Mr. W. 11. Webb to J. P. Eoxbtjrgh, Esq. U.S., N.Z., and A.M.S.S; Line, 54, Exeliange Place, Sik,— New York, 6th August, 1872. I wrote you by last mail promising to write you definitively by this mail regarding the proposed contract with the A.S.N. Co , of (Sydney, which I now do by the present. You arc aware that notice lms been given and accepted by the respective parties to the existing contract for ita termination next month. This notice was given, as you arc also aware, in the full and undoubted expectation that the contract made with the Victorian Government would be ratified without delay. This expectation has not been realized, nor have I any official advices as to when the contract will be ratified by either of the Governments, parties to it. In view of titesn unlooked-for circumstances which have arisen since the drafts for the agreement were made, I have decided to return the draft which you forwarded to me, as one satisfactory to the Company, without my signature. I come to this conclusion without regard to any difference in opinion between myself and the Company, as to the conditions of the agreement, but simply because 1 think it to the best interests of both parties to await the further action of the Colonial Governments respecting the San Francisco service. "With this view, and being anxious not only to be in good relations with the A.S.N. Co., but to run our steamers in connection with theirs, I come to them through you with this proposition, viz. : — That this line and their Company shall continue to run their steamers under and according to the existing original contract for an indefinite period, and until either the New South Wales Government or the Victorian Government, or both, decide what they will do regarding a contract for mail service with San Francisco, either party to pivc to the other a reasonable notice—say three and not less than two months' notice —of their determination to discontinue the agreement. Not being advised of any difficulty having arisen under the original contract, I assume the A.S.N. Co. will gladly assent to my proposition, but the Government of New Zealand, or rather the Post-master-General Julius Vogel, must give his approval to the arrangement, to make it valid, and enable us to perform the mail service. I shall forward a copy of this letter to the Postmaster-General of New Zealand, requesting his assent under the circumstances to this arrangement. I shall also send copies to Henry Driver, Esq., Inspector, and our agents at Auckland and Sydney, directing them to co-operate with you in the matter. I have therefore again to request that you will arrange this business as above set forth, leaving its conclusion with you and Inspector Driver, keeping in view any action that may have been or is likely to be taken by the Governments who are parties to the mail contract made in March last. I have, &c , J. P. Eoxburgh, Esq., Exchange, Sydney. W. H. Webb. I—E. 3.

1873. NEW ZEALAND.